Indonesia moves to classify online motorcycle‑taxi drivers as UMKM enterprises

The Indonesian government is drafting a Presidential Regulation to legally recognise online motorcycle‑taxi (ojol) drivers as micro, small and medium enterprises (UMKM) rather than as employees. Minister of UMKM Maman Abdurrahman said the draft is being coordinated across several ministries, with discussion ongoing on which ministry will oversee the policy – Transport, Communication and Digital, or UMKM.

According to Maman, virtually all driver associations and community groups consulted prefer the UMKM status because it offers greater flexibility and allows them to run side businesses. The new classification would also enable drivers to access government programmes such as the People's Business Credit (KUR) and other support measures. The initiative aims to provide legal certainty for the growing gig‑economy workforce.

Both reports note that the regulation is being finalised quickly to give drivers a clear legal basis for their entrepreneurial activities.